Ex-McKinsey Consultant Says Hospitals Can Recover $MMs in Underpayments

The CFO's Dilemma: Balancing Healthcare Finances in a Rapidly Changing Environment

In this podcast interview, Joshua Bernstein began by explaining his decision to bring all of his consulting work under one umbrella, which led to the establishment of his current firm, VaultProfitPartners.com .

He emphasized the importance of collaborating with various experts and service providers to best serve his clients, who are primarily CEOs and CFOs of companies with at least 250 employees and significant revenues. Joshua's experiences at McKinsey and in operational roles have equipped him to work effectively in the middle market, where he finds great satisfaction in closely partnering with CEOs and CFOs.

Underpayments: A Major Challenge for Hospitals

One of the areas Joshua focuses on is helping hospitals and health systems address underpayments from insurance companies. He explained that hospitals often do not receive the full contractual amount for the services they provide, resulting in significant revenue and profit losses.

The complex nature of insurance contracts, frequent changes in terms, and underhanded tactics by insurers further exacerbate the problem. Joshua highlighted the need for hospitals to improve their processes and invest in software solutions to identify and address underpayments. Additionally, he emphasized the importance of collaboration and bringing in specialized service providers to maximize revenue recovery.

AP Automation and Fraud Prevention

Joshua also discussed AP Automation as a crucial solution for companies in various industries, including healthcare. He highlighted the issue of fraud in the accounts payable (AP) process and how companies can mitigate it through the use of virtual credit cards. Virtual credit cards offer enhanced security and trackability, reducing the risk of fraudulent transactions.

Furthermore, by adopting AP Automation and utilizing virtual credit cards, companies can generate additional revenue through credit card interchange fees. Joshua emphasized the growing adoption of this technology in Europe and the need for US companies to catch up to remain competitive.